COLUMN BUSINESS TALK Delicate art of patient billing I Guide to spending, collecting and saving money (part 4) BY ANTHONY LOMBARDI n practice, it is a good idea to have a mentor to look up to with help and guidance when approaching clinical cases. When learning how to make your money grow, it is also advisable to have mentors that allow you to expand your thinking – since most of us often have our brains on clinical mode and sometimes are unable to see great opportunities right under our noses. Before we delve into the lessons of saving and growing your money, I would like to examine a pair of quotes which will help switch your brain from clinical mode to business mode. “A penny saved is a penny earned. ” – Benjamin Franklin The adage states that saving money is the most important factor in financial stability and building wealth. In his legendary book, The Wealthy Barber , author David Chilton speaks of the importance of consistently saving 10 per cent of everything you earn from every pay period. This is the simplest form of saving and it’s a concept that made Chilton’s barber a millionaire. “Take care of your cents, then your dollars will take care of themselves. ” – Thomas Jefferson • • • • • • stocks bonds mutual funds income-generating real estate royalties anything which appreciates in value over time Investing This quote focuses on the importance of increasing one’s income sources. In the book, Rich Dad, Poor Dad , by Robert Kiyosaki, the author explains that each dollar of your savings should be thought of as your employee. If you have $25,000 then you have 25,000 employees who have the capacity to grow your business if you learn how to recognize opportunities for passive income through investing, purchasing and accounting. Passive income We have heard the term “passive income” many times, but do we really know what it means? Passive income is generating money from a concept or organization that does not require our direct presence. Once we save money, we are essentially looking for ways to maximize our income. I will be able to explain some of these concepts in this article, but make it a goal of yours to work towards maximizing your passive income. Here is a short list of examples of passive income: • businesses or practices that do not require your presence ANTHONY LOMBARDI, DC, is consultant to athletes in the NFL, CFL and NHL, and founder of the Hamilton Back Clinic in Hamilton, Ont. He teaches his fundamental EXSTORE Assessment System and conducts practice-building workshops to health professionals. Visit www.exstore.ca for information. 22 Canadian Chiropractor July/August 2014 This is the simplest form of saving money. Regardless of your debt and monthly bills, it is very important to pay yourself first. This is because in order to gauge spending you must be aware of your set income so that you can do your best to be econom-ically efficient. In The Wealthy Barber , Chilton recommends in-vesting 10 per cent of each pay cheque into some sort of long-term investment vehicle like mutual funds or a high-earning savings fund. I do this myself, and as I have learned, in order to be successful, you must invest each month – ignoring whether the market is high or low. This is called “dollar cost averaging.” It ensures that you do not get hurt by market fluctuations as long as you are committed to the long term. My best advice would be to use an investment professional who has very good references. Make sure to ask around and choose someone who has a short-and long-term plan outlining an investment strategy. Purchasing For a chiropractor, investing in real estate offers a tremendous opportunity to create wealth. As with all investments, some due diligence needs to be performed to help put the probabilities for success on your side. Here are some of the advantages of buying real estate out of which to run your practice. Rental Income If you recall, The Wealthy Barber said “pay yourself first.” When www.canadianchiropractor.ca
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